FX.co ★ Central Bank of Kenya Leaves Rates Steady

The Central Bank of Kenya kept its benchmark interest rate unchanged at 8.75% for a fourth consecutive meeting in October 2026, stating that it expects inflation to remain within its target range in the near term, even though it has inched up over the past three months. Kenya’s inflation rate rose to 6.8% in September 2026, the highest level since January 2024. Policymakers highlighted that government measures—such as subsidies and a temporary reduction in VAT on fuel—continue to cushion inflationary pressures. The central bank also raised its 2026 economic growth forecast to 5%, up from 4.9% projected in August, while noting that El Niño remains a key downside risk to growth.